Fidelity Sells $350 Million in NextVison Shares, Falls Below 5% Stake

Fidelity, one of the world's largest asset managers, has sold a significant portion of its stake in NextVision, an Israeli drone camera manufacturer, for approximately 1.3 billion shekels (about $350 million). The sale, which involved 5.7 million shares, was led by investment bank Goldman Sachs and offered at a 6% discount to the market price, equating to roughly 229 shekels per share compared to the closing price of 244 shekels.

Demand for the shares came from both Israeli and international institutional investors, with foreign entities acquiring a substantial part of the block. This influx of foreign investment into an Israeli company of this scale is considered a notable event in Tel Aviv. Following the sale, Fidelity's stake in NextVision has fallen to below 5%, meaning it is no longer considered a controlling interest and is exempt from reporting future transactions.

Fidelity initially acquired its stake in NextVision in two phases during 2025, through open market purchases and a nearly $200 million investment in the company's large capital raise of approximately $400 million in September of the previous year. Despite the discount sale, NextVision's stock has seen a significant increase of about 62% over the past twelve months, though it remains considerably below its peak of around 390 shekels.

NextVision, founded in 2009 and based in Ra'anana, specializes in developing and manufacturing small, lightweight, stabilized cameras for drones and unmanned aerial vehicles. The company's products have seen a surge in demand, particularly following the war in Ukraine and the global arms race, which have highlighted the importance of drones as weapons. Key customers include defense system manufacturers like Elbit Systems and Ivision Air.

The company's financial performance has been strong, with second-quarter revenues reaching approximately $88 million, a 138% increase year-over-year. Net profit stood at about $54 million, and gross profit margin was 65%. NextVision has raised its annual revenue forecast for 2026 to $355 million and holds a substantial order backlog of around $265 million and over $590 million in cash reserves.

NextVision is currently trading on the Tel Aviv Stock Exchange with a market capitalization of approximately 22.6 billion shekels and a price-to-earnings ratio of about 47, reflecting expectations of continued rapid growth. Major shareholders after Fidelity include Yosef Sandler and Menora Mivtachim, each holding around 6%. The company is also pursuing mergers and acquisitions and plans to expand its production capacity significantly by the end of 2026.